Marketing Strategy and Competitive Positioning pdf ebook

Systematic screening
If resources are committed to the development of a new product idea, management should 
assess the commercial potential and technical (including production) feasibility of the idea. 
If there are alternative ideas or projects competing for development funds and management 
time, these have to be screened and the more viable and attractive ideas selected.
Ideas screening is, therefore, an important component of the product innovation pro-
cess. Screening can take up management’s time. It is often tempting for the management 
team to devote a minimum amount of time and effort to it, and even to skip the exercise, 
in the rush to get idea development started and new products out to market quickly. An 
idea coming from a senior manager in the firm may sometimes also escape thorough 
screening and evaluation because of the assumed credibility of the source – which could 
turn out to be a costly error of misplaced confidence. Or ideas may not be systematically 
evaluated because management regards screening as a superfluous exercise given the lack 
of concrete data, in the early stages, on what are still apparently vague and ill-formed 
ideas.
Whatever the barriers, it pays to give serious attention to screening. There are good 
reasons for doing this. Screening helps avoid potentially heavy losses by reducing the pos-
sibility of bad ideas being accepted, and raises the chances of good ideas being developed. It 
encourages more efficient resource allocation by directing the firm’s attention to the ‘best’ 
ideas and encourages firms to pursue those ideas that build on its core strengths. Also, as 
screening experience accumulates, it improves the managers’ precision in ideas selection, 
so increasing the chances of success.
Initial screen
Screening can be conducted at different levels of detail. The preliminary screening may be 
treated as a coarse filter, enabling managers quickly to separate out useful ideas for further 
investigation. Figure 12.8 shows the key screening questions. Remember that the initial 
screen is only a crude filtering device. Sometimes a new product idea might hit a legal, 
technical or marketing barrier that might not be particularly insurmountable. It is therefore 
important for the management team to use the tool cautiously, taking on board internal 
company, as well as market and technological, developments that could be exploited to avoid 
premature closure of new product opportunities.
Figure 12.8 
Initial 
screening of ideas
• Is the idea compatible with company 
objectives?
• Is the idea legally acceptable?
• Can the idea be technically developed 
within the desired time and resource 
constraints?
• Is there a demand for the proposed 
product?
• Does the idea fit with the firm’s current and 
desired marketing objectives and resources?
• Are the commitments and risks involved 
acceptable?
Yes
No
Go on
End

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